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Question: The capital balances of Donny and Belle remained at P500,000 and P250,000 throughout the entire year. Donny made regular drawings of P150,000 and Belle P100,000. These are normal drawings made by the partners. Net income for the year was P400,000. They agree to divide profit equally.
a. How much will be the capital balance of Donny at year end?
b. How much will be the drawings' capital balance of Belle at year end?
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